This chapter contains the following topics:
Before you complete the tasks in this chapter, you must:
Set up company fiscal patterns for all projection years.
See "Setting Up Fiscal Date Patterns, Setting Up a Fiscal Date Pattern" in the JD Edwards EnterpriseOne Applications Financial Management Fundamentals Implementation Guide.
Set up the market, renewal, and potential rent.
See Setting Up Market, Renewal, and Potential Rent Information.
Set up user-defined codes for special ledgers in UDC table 15/PG and ledger types in UDC table 09/LT.
Set up bill codes and the associated automatic accounting instructions (AAIs).
This section provide an overview of projected rent generation and discusses how to:
Run the Projected Rent Generation program.
Set processing options for Projected Rent Generation (R15660).
You can use rent projections to review rent increases that are based on tenants' lease terms, estimate future cash flow with different inflation and occupancy factors, or report five-year future rent when doing so is required on financial statements.
Use the Projected Rent Generation program (R15660) to automatically project rent into the future. During the generation, the system:
Gathers necessary information by reviewing these tables:
Lease Master Header table (F1501B) for the time periods that each unit is occupied.
Recurring Billings Master table (F1502B) for the rent amounts that are related to occupied units.
Area Master table (F1514) and Market/Potential/Renewal Rent Master table (F159071) for units and their related areas.
Calculates the projected rent, according to whether the unit is occupied or vacant:
A unit is occupied when it has a lease attached to it during the term of the projection. The system uses the rent information from recurring billings.
For a vacant unit to which no lease is attached on the beginning date of the projection, you can set the Bill Code for Vacant Units processing option (on the Process tab) to control whether the system projects rent for that unit.
If it does, the system uses the market rent.
If the lease of an occupied unit expires before the ending date of the projection, an occupancy gap exists.
You can set the Renewal processing option (on the Process tab) to control whether the system projects rent for a unit during this time of vacancy. If it does, the system uses the information for the recurring billings from the expired lease.
If the system projects rent for a unit during an occupancy gap and a calendar year changes before a new lease resumes, the system increases the rent by the inflation rate that is specified in the Annual Inflation Rate processing option on the Process tab.
Updates the Account Balances table (F0902).
The system saves the rent amounts within specific ledgers, with each amount going into the account that is associated with the business unit of the building, and the object and subsidiary of the AAI linked to the bill code.
Each generation that updates the table clears the ledgers of all the information that is associated with rent projection and replaces it with the newly generated information. The system does track prior rent projections.
Populates the Account Balances table (F0902) using the appropriate AAI, depending on whether the lease is receivable (RM AAI) or payable (PM AAI).
Generates a report with the rent projection information.
Use the Update Account Balances processing option on the Print tab to specify whether the system updates the F0902 table or just generates the report so that you can preview the projection.
Select Projected Rent (G1529), Projected Rent Generation.
Processing options enable you to specify the default processing for programs and reports.
Specify the beginning date of the reporting period. The system calculates the projected rent for periods that occur on or between the beginning and ending dates entered in the processing options.
Specify the ending date of the reporting period. The system calculates the projected rent for periods that occur on or between the beginning and ending dates entered in the processing options.
Specify a bill code that the system uses to project market rent amounts for vacant units. The bill code instructs the system which AAI account to enter the projected rent amounts for the vacant units. If you leave this processing option blank, the system bypasses vacant units.
Specify the billing frequency that the system uses to project market rent amounts for vacant units.
If you entered a bill code in the previous processing option, then you should enter a billing frequency code. If you enter a bill code in the previous processing option and leave this option blank, the system uses a monthly billing frequency.
Specify which square footage the system uses from the Lease Master Detail table (F15017). Values are:
Blank: Use the rentable square footage.
1: Use the usable square footage.
Specify which area type the system retrieves from the Real Estate Management Constants table (F1510B) to calculate projected rent on vacant space. Values are:
Blank: Use the value from the Alternate Area Type processing option.
1:Rentable Area Type field (RNAT).
2:Usable Area Type field (USAT).
If both area-type processing options are blank, the system uses the value from the Rentable Area Type field (RNAT).
Enter a user-defined code from UDC table 15/AR that specifies which area type the system should use if the Select Area Type processing option is blank.
Specify an annual inflation rate if you want the system to assume that leases renew at this rate indefinitely (for example, for 5 percent, enter .05).
If you enter an inflation rate, the system uses it to calculate projected rent amounts for units that have either a gap between occupancies or is projected at market rental rates upon lease expiration. For example, if one lease expires on April 30, 2007, and another lease for the same unit begins on June 1, 2010, the system uses the projected rent amount for the first lease through Dec. 31, 2009, and then multiplies it by the inflation rate entered here to project rent for the unit from Jan. 1, 2010, to May 30, 2010.
Specify which projected rental amounts the system uses for reporting after the lease has expired. Values are:
Blank: Do not assume renewal of the lease.
1: Assume renewal of the lease.
Specify ledger type codes. The system enters amounts generated in the rent projection into accounts in the ledger types that you specify. Each time you run the R15660 report, the system clears the accounts in the ledger types and enters the amounts into the appropriate accounts through the bill code specifications and AAIs.
|
Note: As a precautionary measure to avoid clearing actual amounts, you first must set up these ledger types in UDC table 15/PG in order for the system to recognize these ledger types as eligible to be cleared and then regenerated. The system does not clear ledger types AA, AU, and AZ, regardless of whether they are set up in this UDCs table. |
Specify whether the system enters the projected rent amounts as credits or debits. Values are:
Blank: Debit entries.
1: Credit entries.
Specify whether the system should update the account balances with projected rent amounts. Values are:
Blank: Print a report without updating any account balances.
1: Update account balances with projected rent amounts.
Specify what square footage value should print on the report. Values are:
Blank: Print the unit's average square footage over the generation period.
1: Print the last square footage amount on the unit total line.
Specify which description should print on the report. Values are:
Blank: Lease description.
1: Tenant name as the description.
This option controls the Description field on the report if the detail line relates to an occupied unit. However, if a unit is vacant during the rent projection period, the field contains the description of the unit. If the line relates to a property or building, the field contains the description of the business unit.
Specify how the system summarizes and totals amounts for the report. Values are:
Blank: Summarize the amounts within the generation period as a combined total for each building and unit along with the grand total.
1: Print annual totals within the unit and building and include grand totals.
Specify a bill code that the system uses to record unit square footage. The system uses the business unit of the building and the object and subsidiary of the AAI linked to the bill code.
Specify whether to select or omit bill codes from the Projected Rent Generation report (R15660). You can select or omit up to eight bill codes. Values are:
Blank: Include all bill codes.
1: Include only the selected bill codes.
2: Omit the selected bill codes.
Specify whether the system prorates amounts from partial month recurring billings. Values are:
Blank: Do not prorate.
1: Prorate.
Specify whether the system includes non-billable lease statuses in the projected rent calculation. Values are:
Blank: Do not include.
1: Include.
Specify whether the system includes the tax amount as part of the projected rent calculation. Values are:
Blank: Include.
1: Exclude.
Specify the account the system uses for square footage. Values are:
Blank: Use the business unit from the rent account when deriving the square footage account.
1: Use the company from the Unit Master when deriving the square footage account.
This section provides an overview of projection adjustments and discusses how to:
Run the Reapply Projection Adjustment program.
Set processing options for Reapply Projection Adjustment (R15665).
When you run the Projected Rent Generation program (R15660), the system deletes all the information that is associated with rent projection in the Account Balances table (F0902) and replaces it with the newly generated information. Therefore, you must reapply the adjustments to the projected rent that you made prior to the generation. You can do this automatically by running the Reapply Projection Adjustment program (R15665), which updates the F0902 table from the Account Ledger table (F0911).
The R15665 program applies only to the adjustments that you have already entered, reviewed, and posted in the JD Edwards EnterpriseOne General Accounting system before a generation. Therefore, you do not have to run this program regularly.
For example, assume that you projected the rent for a unit with an occupancy gap between leases. Because the gap crossed a calendar year, the system increased the rent by the annual inflation rate for the remainder of the gap. However, you wanted the rent to be inflated for the entire occupancy gap, so you use the JD Edwards EnterpriseOne General Accounting system to adjust the projected rent amount accordingly. However, when you generate projected rent again, you lose the adjustment and you have to run the R15665 program to restore it.
Select Projected Rent (G1529), Reapply Projection Adjustment.
Processing options enable you to specify the default processing for programs and reports.
Specify whether to run this program in proof or final mode. Values are:
Blank: Proof mode. Print an edit report without updating any files in the Account Balances table (F0902).
1: Final mode. Update the F0902 table.